The former Reform UK MP James McMurdock’s business affairs during the Covid pandemic have been referred to the Public Sector Fraud Authority, the Guardian understands.
It follows a referral by the Covid corruption commissioner on Wednesday. The authority will investigate the evidence and work with relevant agencies if required.
McMurdock, the MP for South Basildon and East Thurrock in Essex, surrendered the party whip last weekend in anticipation of revelations in the Sunday Times, which claimed there were questions over loans totalling tens of thousands of pounds.
It was reported that he took out £70,000 in loans in 2020 from the government’s bounce back scheme. He allegedly borrowed £50,000 for one business, JAM Financial Ltd, which had no employees and negligible assets until the Covid pandemic.
For a firm to have been eligible for the loan, it would have needed to report a turnover of at least £200,000. McMurdock is said to have resigned as a director of the company in 2021 and transferred his shares.
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Another company McMurdock owned, Gym Live Health and Fitness Limited, was said to have borrowed £20,000. It would have required a turnover of £100,000 under the bounce back scheme. It, too, had no employees, according to the latest registered accounts available on Companies House, and had nominal assets until the Covid pandemic.
The companies were due to be struck off the register at Companies House, but on the same day in February 2023 the process of suspending them was halted after the regulator had an objection from a third party.
The MP said he had told the Sunday Times that “all my business dealings had always been conducted fully within the law and in compliance with all regulations, and that appropriately qualified professionals had reviewed all activity confirming the same”.
He said on Tuesday he had decided to remain as an independent MP rather than seek to return to Reform UK after receiving legal advice.
McMurdock, one of the five Reform UK MPs elected last July after winning the Essex constituency by 98 votes, posted on X: “Further to my statement tweeted on 5 July 2025. I have now had a chance to take specialist legal advice from an expert in the relevant field.
“In light of that advice, which is privileged and which I choose to keep private at this time, I have decided to continue my parliamentary career as an independent MP where I can focus 100% on the interests of my constituents.”
